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European QE Expectations Drive Today's Rally
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

Much of today's theme was driven by further expectations of more quantitative easing by the ECB. Following President Mario Draghi's speech at the Jackson Hole symposium, a few strategists moved forward their calls for more interest rate hikes and raised the possibility for asset purchases to near 100%. Action is expected as soon as the upcoming meeting next Thursday. Large-scale asset purchases could start at the beginning of next year should inflation expectations continue to be very low.

The German DAX posted strong gains today as the Euro continued to fall versus other major currencies. The French CAC posted the largest risk-adjusted gain in Europe today even though the country's entire cabinet resigned, and President Hollande's approval rating dropped to 17%, a record low. The spread between the German and Japanese 5-year notes narrowed to as little as 1bp today.

US markets continued to their upward march again today, tacking on their ninth day of gains out of the last 12. The S&P 500 (SPX) eclipsed the 2000 level for the first time in history. The Nasdaq-100 (NDX) is approaching its highest close since August 2000 at 4099.3. Financial stocks and energy stocks led the day's gains with all 10 of the basic S&P sectors finishing positive. Gas-producing companies were among the top performers in the energy space.

New home sales in July posted their second straight month of slower activity after June's figure was revised higher. An annualized 412,000 new contracts were signed in July with supply on the market rising to 205K or 6 months of inventory, the highest it has been since late-2011. Economists had expected sales of 430K.

Tomorrow's Financial Outlook

The major economic report tomorrow is July durable and capital goods orders. The capital goods shipments segment is a good barometer of capital expenditures by corporations in the US. Durable goods orders are expected to rise 8.0% from the prior month due to a very large aircraft order for Boeing (BA). After excluding these orders, durables are expected to rise by 0.5%. Capital goods shipments are expected to rise by 0.7% after orders rose 1.4% in June.

Also to be reported are the S&P/Case Shiller and FHFA home prices from June, both of which are expected to show a further slowing level of increase. Lastly, the Conference Board consumer confidence index for August will be reported in the late morning.

The only global economic report of note overnight is China's gauge of leading economic indicators for July.

Three major US companies are scheduled to report earnings tomorrow. They are Best Buy (BBY), Bob Evans Farms (BOBE), and Sanderson Farms (SAFM). Food prices have surged higher due to a variety of global droughts and diseases so it will be interesting to see what the the latter two companies have to say.


Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
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No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

European QE Expectations Drive Today's Rally
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

Much of today's theme was driven by further expectations of more quantitative easing by the ECB. Following President Mario Draghi's speech at the Jackson Hole symposium, a few strategists moved forward their calls for more interest rate hikes and raised the possibility for asset purchases to near 100%. Action is expected as soon as the upcoming meeting next Thursday. Large-scale asset purchases could start at the beginning of next year should inflation expectations continue to be very low.

The German DAX posted strong gains today as the Euro continued to fall versus other major currencies. The French CAC posted the largest risk-adjusted gain in Europe today even though the country's entire cabinet resigned, and President Hollande's approval rating dropped to 17%, a record low. The spread between the German and Japanese 5-year notes narrowed to as little as 1bp today.

US markets continued to their upward march again today, tacking on their ninth day of gains out of the last 12. The S&P 500 (SPX) eclipsed the 2000 level for the first time in history. The Nasdaq-100 (NDX) is approaching its highest close since August 2000 at 4099.3. Financial stocks and energy stocks led the day's gains with all 10 of the basic S&P sectors finishing positive. Gas-producing companies were among the top performers in the energy space.

New home sales in July posted their second straight month of slower activity after June's figure was revised higher. An annualized 412,000 new contracts were signed in July with supply on the market rising to 205K or 6 months of inventory, the highest it has been since late-2011. Economists had expected sales of 430K.

Tomorrow's Financial Outlook

The major economic report tomorrow is July durable and capital goods orders. The capital goods shipments segment is a good barometer of capital expenditures by corporations in the US. Durable goods orders are expected to rise 8.0% from the prior month due to a very large aircraft order for Boeing (BA). After excluding these orders, durables are expected to rise by 0.5%. Capital goods shipments are expected to rise by 0.7% after orders rose 1.4% in June.

Also to be reported are the S&P/Case Shiller and FHFA home prices from June, both of which are expected to show a further slowing level of increase. Lastly, the Conference Board consumer confidence index for August will be reported in the late morning.

The only global economic report of note overnight is China's gauge of leading economic indicators for July.

Three major US companies are scheduled to report earnings tomorrow. They are Best Buy (BBY), Bob Evans Farms (BOBE), and Sanderson Farms (SAFM). Food prices have surged higher due to a variety of global droughts and diseases so it will be interesting to see what the the latter two companies have to say.


Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

More From Minyanville Staff
European QE Expectations Drive Today's Rally
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

Much of today's theme was driven by further expectations of more quantitative easing by the ECB. Following President Mario Draghi's speech at the Jackson Hole symposium, a few strategists moved forward their calls for more interest rate hikes and raised the possibility for asset purchases to near 100%. Action is expected as soon as the upcoming meeting next Thursday. Large-scale asset purchases could start at the beginning of next year should inflation expectations continue to be very low.

The German DAX posted strong gains today as the Euro continued to fall versus other major currencies. The French CAC posted the largest risk-adjusted gain in Europe today even though the country's entire cabinet resigned, and President Hollande's approval rating dropped to 17%, a record low. The spread between the German and Japanese 5-year notes narrowed to as little as 1bp today.

US markets continued to their upward march again today, tacking on their ninth day of gains out of the last 12. The S&P 500 (SPX) eclipsed the 2000 level for the first time in history. The Nasdaq-100 (NDX) is approaching its highest close since August 2000 at 4099.3. Financial stocks and energy stocks led the day's gains with all 10 of the basic S&P sectors finishing positive. Gas-producing companies were among the top performers in the energy space.

New home sales in July posted their second straight month of slower activity after June's figure was revised higher. An annualized 412,000 new contracts were signed in July with supply on the market rising to 205K or 6 months of inventory, the highest it has been since late-2011. Economists had expected sales of 430K.

Tomorrow's Financial Outlook

The major economic report tomorrow is July durable and capital goods orders. The capital goods shipments segment is a good barometer of capital expenditures by corporations in the US. Durable goods orders are expected to rise 8.0% from the prior month due to a very large aircraft order for Boeing (BA). After excluding these orders, durables are expected to rise by 0.5%. Capital goods shipments are expected to rise by 0.7% after orders rose 1.4% in June.

Also to be reported are the S&P/Case Shiller and FHFA home prices from June, both of which are expected to show a further slowing level of increase. Lastly, the Conference Board consumer confidence index for August will be reported in the late morning.

The only global economic report of note overnight is China's gauge of leading economic indicators for July.

Three major US companies are scheduled to report earnings tomorrow. They are Best Buy (BBY), Bob Evans Farms (BOBE), and Sanderson Farms (SAFM). Food prices have surged higher due to a variety of global droughts and diseases so it will be interesting to see what the the latter two companies have to say.


Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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